TOMI Environmental Solutions (TOMZ) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 118% year-over-year to $2.25 million and 36% sequentially, marking the third consecutive quarter of growth, driven by equipment and CES-related sales.

• Gross margin for Q2 2026 was 61.7%, with operating expenses down 10% year-over-year due to disciplined cost management.

• Net loss for Q2 2026 was $382,000, a significant improvement from $1.24 million in Q2 2025; operating loss improved 78% year-over-year to $244,000.

• Signed a definitive merger agreement with Carbonium Core, aiming to diversify into advanced materials and requiring $10 million concurrent financing.

• A 1-for-3 reverse stock split was effected post-quarter to regain Nasdaq compliance.

Financial highlights

• Q2 2026 revenue: $2.25 million (+118% YoY); six-month revenue: $3.9 million (+50% YoY).

• Product revenue was $1.86 million, up 185% year-over-year; service revenue was $389,000, up 3% year-over-year.

• Gross profit for Q2 2026: $1.39 million (gross margin 61.7%); six-month gross profit: $2.22 million.

• Operating expenses reduced by 10% year-over-year to $1.63 million; cash and cash equivalents at quarter end were $322,000, with working capital of $1.82 million.

• Net loss improved by 69% to $382,000; net loss per share narrowed to $(0.05) from $(0.19) in Q2 2025.

Outlook and guidance

• Reaffirmed full-year 2026 revenue guidance of at least $12 million, representing 113% year-over-year growth.

• Booked orders and expected completions before year end exceed $6.2 million; sales backlog expanded to $2.6 million post-quarter.

• Active integrated project pipeline of $4.3 million and broader commercial sales pipeline of $35 million, with $8.6 million in advanced stages.

• Anticipates break-even by Q4 2026, driven by revenue growth and cost discipline.

• Focused on completing the $10 million concurrent financing and closing the merger with Carbonium Core.